Credit Union Credit Card Penetration Rate At 15.3%
Washington, DC (PRWEB) July 16, 2013 -- According to Callahan & Associates, over the past year credit unions have increased credit card penetration as consumer spending and income have grown consistently in the past 4 quarters. The credit card penetration rate is 15.3%, a 55 basis point increase from 2012 and 95 basis points higher than five years ago.
Taupa Lithuanian ($21.0M, South Boston, MA) is a leader in credit card penetration, having a credit card penetration rate of 65.7%. This percentage marks an 82 basis point increase from the previous quarter, due in large part to a greater number of credit card accounts opened at the credit union.
As of March 2013, the overall credit union industry average for credit card utilization was 32.2%. This ratio is calculated by dividing the total outstanding amount of credit card balances by the total remaining amount of credit available plus the amount of outstanding balances.
Members of West Virginia credit unions use their credit cards more frequently than any other state, with over 39.1% of available funds being used. West Virginia’s credit union members have spent $36 million out of the total $93 million in credit available to them.
South Carolina and New Hampshire had the next highest credit card utilization rates at 39.0% and 37.9% respectively, while Massachusetts posted the lowest rate, with credit union members utilizing only 24.8% of credit available to them.
According to Callahan & Associates’ Peer-to-Peer Analytics, 54% of national credit unions offer members credit cards and more than 73% offer an ATM or debit card program, as of the first quarter of 2013. These statistics indicate that plastic is still the predominant payment option for credit union members.
Callahan & Associates is a Washington, DC-based firm that delivers in-depth analysis of credit union quarterly performance through its proprietary software and financial publications. As a financial consultant, it also offers strategic planning and investment management for credit unions. Visit http://www.creditunions.com to learn more.
Jennifer Rosenbaum, Callahan & Associates, http://www.creditunions.com, 202-223-3920, [email protected]
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